Gold ETFs Hit Record Value but Not Record Holdings
- The amount of gold held by ETFs has only increased 25% since 2012.
- Yet, the value of gold held by ETFs has never been higher.
Gold’s stunning surge to all-time highs has pushed the amount of gold held by ETFs to new records—at least in dollar terms.
As a group, the value of gold held by ETFs has never been higher. According to the latest data from the World Gold Council, gold exchange-traded funds globally now hold $365 billion worth of gold, up significantly from around $240 billion a year ago.
But the amount of physical gold these ETFs actually hold isn’t at a record. As of now, gold ETFs globally hold 3,512 metric tons of gold—about 113 million troy ounces. That’s well below the all-time high of 3,919 metric tons reached in October 2020 and only about 25% more than the 2,800 metric tons held in 2012.
The divergence stems from the fact that gold ETFs haven’t been big buyers of gold in recent years. Most of the increase in their assets has come from the massive rise in gold prices, which made their existing holdings more valuable.
Gold ETFs Buy Gold Again
But that may be starting to change. After being net sellers of gold in 2022, 2023 and most of 2024, gold ETFs have collectively added 227 metric tons so far this year.
That’s a significant number in a market that saw 4,974 metric tons of total gold demand in 2024.
Of this year's gold ETF demand, around 60% has come from North America, while 25% has come from Europe and 15% has come from Asia.
If President Donald Trump’s trade war continues to pressure the U.S. dollar and prompts investors and central banks to seek alternative reserve assets, gold and gold ETFs could remain in high demand.
On Monday, the price of gold topped $3,400 per ounce for the first time ever. That’s a gain of 30% since the start of the year, which comes on top of last year’s 27% rise in the yellow metal.
